By David Milliken
LONDON (Reuters) -Former U.S. Federal Reserve official Randall Kroszner will join the Bank of England’s Financial Policy Committee (FPC) as a part-time external member for three years starting in February 2023, Britain’s finance ministry said on Wednesday.
Kroszner was a governor on the Federal Reserve’s board from 2006 to 2009 and is now a professor of economics at the University of Chicago Booth School of Business, where he focuses on financial regulation.
“His leading academic voice in macroprudential policy … and his experience at the Federal Reserve during the global financial crisis will be of real value to the committee,” finance minister Jeremy Hunt said.
The 13-member FPC monitors risks to Britain’s financial system and sets capital buffers for British banks and maximum loan-to-income ratios for mortgage lending, as well as giving more general supervisory guidance.
Kroszner succeeds Anil Kashyap, another Chicago Booth professor, who stepped down in September.
The FPC is chaired by BoE Governor Andrew Bailey and has five other BoE staff on it, as well as the chief executive of Britain’s Financial Conduct Authority, a non-voting finance ministry representative and five external members.
Bailey welcomed Kroszner’s “significant international policy experience and extensive research on the financial sector”.
External members of the FPC received an annual salary of 98,200 pounds ($118,822) in the 2021/22 financial year. The committee has four scheduled meetings a year, but convenes more often at times of financial market stress.
($1 = 0.8264 pounds)
(Reporting by David Milliken, Editing by Kylie MacLellan)
